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FinMin ignored demands despite global slowdown: exporters

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 2:31 AM IST

Grappling with the impact of global slowdown, exporters today said they were disappointed that Finance Minister Pranab Mukherjee ignored their demands in his Budget proposals for 2012-13.

In the wake of deceleration in exports growth rate, FIEO demanded continuation of 2% interest subsidy scheme beyond March 31, against the backdrop of demand slowdown in global markets like Europe and the US.

"Global challenges of exports have been ignored by the minister," Federation of Indian Export Organisations (FIEO) President M Rafeeque Ahmed said.

The Apparel Export Promotion Council (AEPC) said the Budget proposals would have a limited impact on the industry.

"The textile package has only addressed the handloom and power-looms sector and not the larger needs of the industry, specially the credit availability at concessional rates," AEPC Chairman A Sakthivel said in a statement.

Exporters said that although the minister mentioned that India has successfully diversified export and import markets, he was silent on major demands of the exporters.

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"The share of Asia, including ASEAN, in total trade increased from 33.3% in 2000-2001 to 57.3% in the first half of 2011-12. This has helped us weather the impact of global crisis emanating from Europe and to a lesser extent from USA," Mukherjee said.

From a peak of 82% in July, export growth slipped to 44.25% in August, 36.36% in September and 10.8% in October, 3.8% in November.

However, exports grew 6.7% in December, and over 10% in January.

Commerce Secretary Rahul Khullar has said that due to the global economic uncertainties, 2012-13 will be a difficult year for Indian exporters.

During April-January 2011-12, exports grew by 23% to $243 billion, while imports aggregated at $391 billion, a growth of over 29%.

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First Published: Mar 16 2012 | 9:43 PM IST

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